Apr 09, 2020 The Measurable Value of Video
Never has video conferencing played a more vital role than it has in the Covid-19 pandemic. As 90.6% of companies sent employees to home offices, and millions of students went home for virtual learning, video has been the key enabling technology.
But even before a global pandemic, video conferencing was driving business value in organizations large and small. Nemertes recently asked 564 organizations how video delivered measurable value in our 2020-21 Cost-Benefit Analysis: Workplace Collaboration research study.
Organizations measured business value in three core areas: Travel, hiring, and sales. Among the research participants, 46.3% said video reduces travel, 29.4% said it reduces the time it takes to hire new employees, and 34.2% said it increases sales.
One of the primary values of video is to replace in-person meetings. This, of course, saves time and travel cost. Often, the travel costs saved can pay for video within one to two years. Video replaces 29.1% of meetings that would have otherwise been held in person. On average, that equates to 329 trips per year, at a total value of $477,044. In addition to the travel costs, companies also save 53 minutes per employee to complete, process, and approve expense reports.
Organizations conduct an average of 705 video interviews per year, and of those, 208 would have required travel. The average cost per trip is $1,428, so video generates hard-dollar savings. In addition, they shave an average of 13 days off the amount of time it takes to hire each new person. By hiring a person sooner, companies can have that employee start generating revenue. So, based on the type of company and the position, video can help generate revenue when used in hiring, as well.
Sales and client service teams leverage video for calls with customers and prospects. On average, companies conduct 8,425 sales calls using video each year (large companies with more than 2,500 employees conduct 14,409 video sales calls annually). Video helps close 38.9% of sales opportunities through the value of face-to-face interactions.
Video delivers value in measurable ways, such as those mentioned above. It also provides value by increasing employee productivity, by giving employees more time back to complete more tasks. Organizations should have a video strategy, and regularly revisit it to determine ways to gain further efficiencies and business value.